Prologis sees record lease signings in 2025

“2025 was a grounds twelvemonth for lease signings, mounting the concern up with beardown momentum for 2026,” said Prologis CEO Dan Letter successful a quality release. “Customers are making semipermanent decisions with greater conviction, and we are gathering that request with a level that brings logistics, integer infrastructure and vigor unneurotic astatine a planetary scale.”

The San Francisco-based existent property concern spot inked deals representing 228 cardinal quadrate feet of abstraction past year, a astir 20% y/y increase, adjacent arsenic on-again, off-again tariffs crimped lawsuit demand. The manufacture was besides dealing with a post-Covid hangover arsenic caller spot deliveries were met with sagging demand.

New leases commenced successful the 4th fourth were down 6% y/y to 43.8 cardinal quadrate feet. Average occupancy fell 30 ground points y/y to 95.3%. However, that was the highest occupancy complaint of the twelvemonth and a motion that the marketplace has apt bottomed. (Occupancy was 95.8% to adjacent the quarter.)

The company’s 2026 guidance calls for halfway FFO of $6.00 to $6.20 per share, which brackets the statement estimation of $6.13. The usher assumes mean occupancy successful a scope of 94.75% to 95.75% and improvement starts betwixt $2.25 cardinal and $2.75 billion.

Shares of PLD were up 1.6% successful premarket trading connected Wednesday.

Prologis volition big a telephone astatine noon EST connected Wednesday to sermon fourth-quarter results.

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The station Prologis sees grounds lease signings successful 2025 appeared archetypal connected FreightWaves.